Apple Stock Headed to $600

Strong sales of the new iPhone 5S and iPhone 5C explain only part of the reason why shares should continue to rally.

Apple is manufacturing a growth spurt that could send its shares more than 20% higher to $600 over the next year.

Apple (ticker: AAPL) said Monday that it sold nine million of its new iPhone 5S and 5C devices during the first three days they were available, versus five million for last year's iPhone 5. (See Tech Trader Daily.) That's partly explained by this year's broader launch; China got phones on the same day as the U.S. Then...